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Estimating Farmers' Willingness to Change Tillage Practices to Supply Carbon Emissions Offsets

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  • Gramig, Benjamin M.
  • Widmar, Nicole J.O.

Abstract

One common element in many voluntary and regulatory carbon markets to date has been the inclusion of emissions offsets that can be sold by entities outside of emission caps. A particularly low cost means of sequestering atmospheric carbon is reducing tillage of agricultural soils. A choice experiment is conducted with corn and soybean farmers in Indiana, USA to measure farmers' willingness to change tillage practices to supply carbon offsets by estimating their willingness to accept (WTA) payment related to different attributes of active and proposed carbon markets. This research is unique in its focus on the supply side of the market for environmental services, and contributes to the nascent literature on the valuation of the ‘means’ of achieving an improvement in environmental quality, rather than the environmental ‘end’ result of a proposed policy or market. Understanding farmers' preferences and willingness to adjust practices is vital to designing schemes that farmers will participate in so that global carbon abatement efforts can be achieved in the most cost-effective ways possible. We investigate attribute non-attendance (ANA) in our sample, estimate and compare WTA amongst adopters and non-adopters of no-till, and compare WTA with current carbon prices to evaluate the prospects for increased adoption.

Suggested Citation

  • Gramig, Benjamin M. & Widmar, Nicole J.O., 2015. "Estimating Farmers' Willingness to Change Tillage Practices to Supply Carbon Emissions Offsets," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204203, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc15:204203
    DOI: 10.22004/ag.econ.204203
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    References listed on IDEAS

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    1. Wolf, Christopher A. & Tonsor, Glynn T. & Olynk, Nicole J., 2011. "Understanding U.S. Consumer Demand for Milk Production Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-17.
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    4. Christensen, Tove & Pedersen, Anders Branth & Nielsen, Helle Oersted & Mørkbak, Morten Raun & Hasler, Berit & Denver, Sigrid, 2011. "Determinants of farmers' willingness to participate in subsidy schemes for pesticide-free buffer zones--A choice experiment study," Ecological Economics, Elsevier, vol. 70(8), pages 1558-1564, June.
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    9. Uwe A. Schneider & Pete Smith, 2008. "Greenhouse Gas Emission Mitigation and Emission Intensities in Agriculture," Working Papers FNU-164, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2008.
    10. Benjamin M. Gramig, 2012. "Some Unaddressed Issues in Proposed Cap-and-Trade Legislation Involving Agricultural Soil Carbon Sequestration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 360-367.
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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy; Farm Management;

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